More On Legal & Compliancefrom The Advisor's Professional Library
- The New and Improved Form ADV Whether an RIA is describing its investment strategy in advertisements or in the new Form ADV Part 2, it is important the firm articulates material risks faced by advisory clients and avoids language that might be construed as a guarantee.
- Dealings With Qualified Clients and Accredited Investors Depending upon an RIAs business model and investment strategies, it may be important to identify “qualified clients” and “accredited investors.” The Dodd-Frank Act authorized the SEC to change which clients are defined by those terms.
The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) has further extended the applicability and effective dates of the final rule on investment advice under the Pension Protection Act to May 17, 2010.
As the DOL explains in the November 16 release announcing the extension, on January 21, 2009, the DOL published a final rule governing the provision of investment advice under the prohibited transaction provisions of the Employee Retirement Income Security Act (ERISA). On March 20, the department extended the applicability and effective dates of the final regulation from March 23 to May 22. On May 22, the applicability and effective dates were further extended to Nov. 18.
"The department since has determined that additional time is necessary to consider the legal and policy issues raised by comments on the final rule," DOL states in the release. The "extension of the effective and applicability dates will afford the department the additional time to determine appropriate steps to be taken."